Issue 23 August 2016
l
What’s Inside
Release of the 2016 edition of the EBG
Position Paper - 19th April,2016 at the Taj
Mahal Hotel, New Delhi
Raman Sidhu, FCA
Chairman
EBG Federation, India
2
EU & India
3
EBG Sector Committees
4
Release of EBG Position
Paper (PP), 2016 in New Delhi
5
Release of EBG PP, 2016
in Mumbai & Bengaluru
6
Chapter updates
7
EA Link Project meeting
and EBO meeting
8
Newsletter Sponsor
Dear EBG Members,
I am pleased to bring to you the third edition of this year’s EBG Newsletter and at the
outset thank our sponsor Bird Group & Mrs Radha Bhatia in particular in helping bring out
the Newsletters for this year.
Michelin-EBG-IRF joint event: Panel
discussion on 'Responsible Road Behaviour'
– 20th April,2016 at the imperial, New Delhi.
Release of the 2016 edition of the EBG
Position Paper – 4th May,2016 at the Taj
Mahal Palace, Mumbai
Release of the 2016 edition of the EBG
Position Paper – 8th July,2016 at the RitzCarlton, Bengaluru
We pray for world peace and for so many
innocent human beings including little children
killed and injured due to the most mindless,
barbaric & callous killings.
Our focus like every year is to further strengthen the membership across all four
chapters and to build the SME Forum to start with, in Delhi. Members who are interested to
contribute to the building of EBG’s SME Forum can write to Neema S Kumar at
gm@ebgindia.com
In the run up to the publication of this year’s Position Paper, EBG has enabled the
European companies to come together, sector by sector, and present their concerns and
solutions to the relevant Government agencies. The Position Paper has thus set an agenda
for advocacy by EBG and the basis of a continuing dialogue with policy makers and
concerned Government agencies. The Sector Committee members, on behalf of EBG
Membership, will continue to meet and interact with relevant Ministers and senior
Bureaucrats in Government of India and State Governments. This year successful Position
Paper launch events were held in Delhi, Mumbai and Bengaluru on 10th April, 4th May and 8th
July respectively to release the 2016 edition of the EBG Position Paper. We present to you,
in this Newsletter, a peep into the Release events.
EBG Federation is a member of the European Business Organisation Worldwide
Network (EBOWWN)and I attended their Annual meeting in Brussels in June. There are a
lot of positive signals from the European Commission and the EU Delegation in India to
support EBG in India as they see in EBG a very strong body to represent the voice of
European businesses in India. The EBG Position Paper has over the years been very well
received and appreciated by the European Commission, EU Delegation in India and the
EBOWWN members.
Further, we have had important meetings & events over the last few months, a glimpse
of which are presented in this Newsletter’s Chapter updates. I would like to put in a word of
acknowledgment to EBG’s Council members in all its chapters for being the source of
encouragement for EBG’s growth and for holding high the EBG flag.
You can look forward to more interactive sessions and some high profile events in the
coming months with key EBG Stakeholders.
Best wishes to our members who will be on holiday during this traditional European
holiday period & a happy monsoon season to the members who are still holding fort in
India.
May God Almighty rest their souls in peace and
give their near & dear the strength to face this
irreparable loss in Nice, France.
Best wishes,
Raman
1
EU & India
Tax Treaty Update
India and Mauritius have ended a decade long negotiation of
the popular India Mauritius tax treaty by signing a historic
protocol which provides inter alia the right to India to tax
capital gain income arising from sale of shares of Indian
companies. The Protocol is yet to be notified by the Indian
Government, and is expected to come into effect from April
1, 2017. The changed treaty grandfathers existing
investments (made upto March 31, 2017) and provides for a
transition period of two years from April 1, 2017 till March 31,
2019 wherein subject to satisfaction of a Limitation on
Benefits clause, capital gains arising from sale of shares
acquired and sold during this period will be taxed at a
concessional rate of 50 percent of the applicable tax rates.
The state of the India-Singapore tax treaty however
remains in a flux. The Singapore tax treaty links capital gains
tax exemption in India to an exemption available under the
India Mauritius tax treaty, which primarily means that the
capital gains exemption under the Singapore treaty falls away
with the new Protocol coming into force from April 1, 2017. It
is however expected that the Singapore treaty will be
renegotiated and current Indian investments made by
Singapore residents will be grandfathered post April 1, 2017.
With respect to EU jurisdictions, there are news reports
regarding the Indian Government opening negotiations of the
Dutch tax treaty with the Netherlands. India has already
renegotiated its tax treaty with Cyprus -as per a recent Press
Release (dated July 1, 2016) issued by the Central Board of
Direct Taxes (“CBDT”). The new treaty will provide taxation
rights of capital gains from sale of shares of an Indian company
to India. However, investments made prior to April 1, 2017 will
be grandfathered and sale of such investments any time in the
future will not be taxable in India. India had declared Cyprus as
a notified jurisdictional area (“NJA”) in 2013 which resulted in
increased scrutiny of transactions with Cyprus including an
increased withholding tax rate of 30%. The Press Release of
July 2016 states that India will be considering rescinding,
retrospectively from November 1, 2013, the notification
treating Cyprus as a NJA.
EU members investing into any of the above jurisdictions
including Mauritius and Singapore which in turn invest into
India may need to determine global tax impact on account of
such treaty changes. The described changes also show that
given the global clampdown on use of tax avoidance
structures, including the G20 and OECD's Base Erosion and
Profit Shifting (BEPS) project, India is also taking steps to
prevent its tax base erosion. At the same time, the manner of
renegotiating tax treaties including grandfathering of prior
investments, coinciding effective date of tax treaties with
advent of General Anti Avoidance Rule from April 1, 2017 is
positive and reinforces the Modi Government's moto of
providing tax certainty without introducing retroactive
changes in the Indian tax law.
Courtesy: Parul Jain, Partner, BMR & Associates LLP
EA Link Project meeting and EBO meeting
The EU Asia Link project - Coordination Platform for the Internationalisation
of the EU BusinessCommunity in the Asia Region.
EBG Federation, India was represented by Ms Rekha Khanna, Chairperson, EBG Delhi Chapter at the 2nd meeting of the Asian
Stakeholders of the EALink project that took place from 13th to 15thJune,2016 in Vientiane - Laos. The objective of the meeting was
to fully exploit the potential of EALink to increase visibility among potential EU customers; facilitate exchange of best practices
among Asia stakeholders, on keychallenges: sustainability & outreach.
Annual EBO meeting in Brussels (20th- 22ndJune,2016)
The EBO Worldwide Network ASBL is the sole organisation
representing EU-wide business interests in third countries (non EU
countries) and today has 29 registered members across the globe.
EBO provides a common platform for European Business in nonEU markets (third markets). EBO shares information and best
practices between the network and its stakeholders in order to
provide first-rate services to European businesses outside of the
European Union. The EBO as a network and its individual
members is the “Voice of European Business Abroad”.
EBG Federation India is part of this global network.
This year's 15th Annual EBO meeting was held in Brussels.
EBG Federation was represented by Mr Raman Sidhu, Chairman, EBG Federation,
India at the meeting that took place from 20th to 22ndJune,2016. Mr Sidhu presented
the 2016 edition of the EBG Position Paper at the EBO meeting. The Paper was well
received.
Apart from the attending the EBO meeting, Mr Sidhu also had important external
meetings with Ms Jolana MUNGENGOVÁ, Cabinet of Cecilia Malmström,
Commissioner for Trade and Ms Helena König, Director for Trade Relations with Asia
and Latin America & the Chief FTA Negotiator for India and their respective teams.
EBG acknowledges the support from Mr Maurizio Cellini, First Counsellor, Head of Trade and Economic
affairs, Delegation of the European Union to India. Mr Cellini has completed his tenure in India.
EBG wishes him and his family the very best for his future.
EBOWWN Board
Mr Raman Sidhu, Chairman, EBG India with
Mr Renato Pacheco-Neto, EBOWWN Chairman
Annual EBG-BBG Dateline Delhi event in Delhi
th
Farewell to Mr Maurizio Cellini, First Counsellor, Head of Trade and Economic affairs, Delegation of the European Union to India
EBG also bids farewell to all the Ambassadors & Economic & Commercial Counselors of EU Member States who have
completed their term in India and acknowledges their support to EBG.
2
Wednesday, 10 August, 2016 – Annual EBG-BBG Dateline Delhi event where a panel of eminent speakers will answer questions
on important matters of current affairs.
This year the eminent panel includes Dr Shashi Tharoor, Member of Parliament for Thiruvananthapuram, Chairman of the
Parliamentary Standing Committee on External Affairs; Mr Swapan Dasgupta, Senior Indian Journalist and M P (RajyaSabha); Mr
Anil Padmanabhan, Executive Editor at the Mint, Mr Douglas Busvine, New Delhi Bureau Chief at Thomson Reuters and Mr.Pranjal
Sharma - Commentator, analyst and advisor on economy, globalisation and media. Mr Andrew Soper, Minister Counsellor
(Political and Press), British High Commission will be moderating the session. The Rt. Hon Greg Clark, British Secretary of State for
Business, Energy and Industrial Strategy and the British High Commissioner, Sir Dominic Asquith KCMG will be joining us at the
reception (around 7.30 pm) of Dateline Delhi.
The event is being organised at the British Council, New Delhi. (5:30pm onwards concluding with cocktail reception).
7
Chapter updates
Chapter updates on the road shows organised to release
the 2016 edition of the EBG Position Paper
EBG Sector Committees
Some good reasons to be a part of EBG's sector committees:
Making an impact
Bengaluru
Delhi
The 2016 edition of the EBG Position Paper was released by
Shri Manoj Sinha, currently Minister of State for Communications
(Independent charge); H.E Mr. Tomasz Kozlowski, Ambassador of the
European Union to India; Shri Amitabh Kant, CEO, Niti Aayog and some
of the European Memberstate
Ambassadors on 19th April,
2016 at Taj Mahal Hotel,
New Delhi.
The event was well attended
with around 200 participants
and had representation from
CEOs, CFOs and Managing
Directors of major European companies, leading consultants and
European Member State Embassies. Ambassadors and senior officials
from the European Member States attended the event.
It is noteworthy to mention and acknowlege the efforts put in by all the
Sector Committee Chairpersons & its members and all their
knowledge partners for the timely publication of the EBG Position
Paper, 2016
The event was sponsored by BMW, G4S, Maersk Group, YES Bank, BAE
Systems, Bio Merieux, Hindustan Unilever Limited, SAAB Group,
Michelin, Nokia, Outokumpu, Alar, Moet Hennessy & Kyndal Group.
EBG Federation – Bengaluru Chapter released the Position paper on key
policy reforms for business growth on Friday, 8th July, 2016 in Bengaluru.
The paper was released by the Chief Guest, Karnataka Industry Minister
Mr. R V Deshpande; Chairman, EBG Federation India - Mr. Raman Sidhu;
Chairperson, EBG Federation Karnataka - Ms. Anandi Iyer & Senior
Advisor, Position Paper & Sector Committee Chairperson - Mr. Rajeev
Gupta.
While addressing the participants at the release of the EBG Position
paper, Mr. Deshpande said “Karnataka shares very strong alliance with
all the European companies that have established a presence here since
past many years, there are several factors that have attracted the
investors and big companies. However, I would also like to request you
to also look at expanding to places like Mysuru, Belagavi, Kalaburagi,
Yadgir and Hubballi-Dharwad in Karnataka which are equally attractive
in terms of connectivity, weather conditions & infrastructure with an
added advantage for low cost lands. Much importance is also being given
to improve infrastructure in Bengaluru too and we plan to set up
elevated corridors and provide Metro connectivity to the airport”.
The event was attended by luminaries, policy makers, decision makers,
industry pioneers of European Companies including Consulate General
from Britain, Germany and Switzerland.
Manod Jinnuri (SAAB Group)
Chairman, EBG's Defence sector committee
EBG's Defence Sector Committee comprises
of all major European Defence companies
operating in India, with significant
experienced members, having many programs and stakes due
to their long standing relation with India and Armed Forces.
Government of India, through their recent steps and
efforts attracted companies to invest and support the
requirements. EBG's Defence Sector Committee is putting
continuous and best efforts giving constructive views and
recommendations on all issues for the best of the common
interests and goals.
The EBG brand supports the European Defence
Companies in their endeavours and their growth in facilitating
and leveraging the European position. Its unique position
through the European Commission, is giving a new visibility to
European Defence companies.
Julian Michael Bevis (Maersk Group)
Chairman, EBG's Logistics sector committee
Mumbai
The EBG Position Paper was presented to Shri Subhash Desai, the
Minister for Industries & Mining, Government of Maharashtra on
Wednesday, 4th May, 2016 at
an evening event organised at
The Taj Mahal Palace, Mumbai.
It was a well-attended event.
The event was supported by
Fuchs Lubricants, Motul and
Solvay Specialities Pvt. Ltd.
Release of the EBG Position Paper, 2016 – Friday,
8th July, 2016 in Bengaluru
Other event updates:
A panel discussion was organised jointly by
Michelin India-EBG-IRF on “Responsible Road
Behaviour”. Mr. Jean Todt, President FIA and
UN Ambassador on Road Safety was the Chief
Guest. The event was organised on
Wednesday, 20th April, 2016 at the Imperial
Hotel, New Delhi.
The eminent panel included Mr Jean Todt,
President, FIA, Ms. Deepa Menon, Senior
Vice President, Corporate Communications &
CSR, PVR Ltd and senior official from the
Government of India which covered topics
on:
1. Road Safety in India – Priorities and the
Road'
2. Change agents and Brand Ambassadors
3. Media as a tool for promoting Road Safety
Behaviour Change
Mr K.K. Kapila, Chairman, International Road
Federation (IRF) Geneva Programme Center
moderated the session brilliantly.
It was an informative, interactive, interesting
and well attended session.
EBG Mumbai Chapter and Wines of India
invited the members to join Sommelier Nikhil
Agarwal for tasting of 10 wines from India's
favourite wineries on Thursday, 16th June,
2016 at AKA, Worli.
EBG members were invited by AmCham to an
interactive session on “Foreign Direct
Investment – Taking the Agenda Forward”
organised at the Shangri Hotel, New Delhi on
Wednesday, 3rd August, 2016.
6
European logistics organisations operate in
India in every sector of the industry. They
provide integrated services facilitating the
efficient movement of freight by land, by sea, by air and
thereby provide essential support to India's rapidly growing
domestic and international trade.
Without such services India's flagship Policy programmes
such as 'Make in India' will though not deliver to their full
potential. An efficient logistics sector is therefore vital to
India's future prosperity
EBG Federation (an association of EU Corporates in India)
exists to represent the cause of its membership to all
stakeholders in India. It exists to ensure that the partnership
between European and Indian business is continuously
strengthened and that challenges are jointly and
constructively addressed.
Logistics impacts all sectors of commerce and industry
and the representation of the European logistics sector in
India is therefore a key element of EBG's activities in India
Patrik Antoni (IKEA)
Chairman, EBG's Retail Sector Committee
IKEA sees good value in working together with our European
peers through the platform that EBG provides. We share
experiences and challenges and are now together engaging
with stakeholders working on common key issues.
EBG's Retail sector committee is also working with Invest India to present its
concerns with recommendations to the relevant stakeholders.
T V Ramachandran (Advisory@TVR)
Chairman, EBG's Telecom Sector Committee
EBG's Telecom Sector Committee (TSC) comprises of
representatives from all major European telecom companies
operating in India and it is to be noted that these represent the
largest investments in Indian telecom. There is great
appreciation among members that the EBG brand enjoys significant respect and
standing with the Government and that this needs to be leveraged more for
facilitating the improved growth of the companies. The Government and the
Regulator appear to be developing a favourable opinion of the EBG TSC and seem to
realise that the EBG is putting forth mature and sober positions on all critical
subjects. The EBG TSC is steadily enhancing its activity level in several areas with the
rising interest among members in supporting the Committee and a growing
demand pull of support services from the Committee and the Secretariat. In view of
the significant value addition experienced by members, it has been resolved to
have a suitable person hired to provide dedicated support to the TSC. The Telecom
Sector Committee appears to be fully poised to rise to the next higher level of
standing and contributions to the members.
EBG's Retail sector committee members in a meeting with Invest India
Financial Services Sector Committee set to start soon. It will have representation from companies like TMF, Home Credit,
BMW Financial Services, Devere Group etc.
Welcome New Members
Delhi
Mumbai
1. Fast Lane Automotive Pvt. Ltd.
2. French Bakery
3. Interem-International Removals Division of Freight
Systems India Pvt Ltd
4. PwC
5. TechLegis, Advocates & Solicitors
6. TMF Services India Pvt. Ltd.
7. William Grant & Sons India Pvt. Ltd.
1. Industrial Accessories Corporation
2. DZ Bank
Bengaluru
1. Siemens Technology and Services Pvt Ltd
2. MercuriUrval India
3. Ernst & Young Private LLP
4. Hutchinson
3
Release of EBG Position Paper,2016 in New Delhi
Release of EBG Position Paper,2016 in Mumbai & Bengaluru
Release of the 2016 edition of the EBG Position Paper in Mumbai
Wednesday, 4th May,2016
Release of the 2016
edition of the EBG Position
Paper in New Delhi
Tuesday, 19th April,2016
Details about the event on Page 6
Release of the 2016 edition of the EBG Position Paper in Bengaluru
Friday, 8th July,2016
4
5
Release of EBG Position Paper,2016 in New Delhi
Release of EBG Position Paper,2016 in Mumbai & Bengaluru
Release of the 2016 edition of the EBG Position Paper in Mumbai
Wednesday, 4th May,2016
Release of the 2016
edition of the EBG Position
Paper in New Delhi
Tuesday, 19th April,2016
Details about the event on Page 6
Release of the 2016 edition of the EBG Position Paper in Bengaluru
Friday, 8th July,2016
4
5
Chapter updates
Chapter updates on the road shows organised to release
the 2016 edition of the EBG Position Paper
EBG Sector Committees
Some good reasons to be a part of EBG's sector committees:
Making an impact
Bengaluru
Delhi
The 2016 edition of the EBG Position Paper was released by
Shri Manoj Sinha, currently Minister of State for Communications
(Independent charge); H.E Mr. Tomasz Kozlowski, Ambassador of the
European Union to India; Shri Amitabh Kant, CEO, Niti Aayog and some
of the European Memberstate
Ambassadors on 19th April,
2016 at Taj Mahal Hotel,
New Delhi.
The event was well attended
with around 200 participants
and had representation from
CEOs, CFOs and Managing
Directors of major European companies, leading consultants and
European Member State Embassies. Ambassadors and senior officials
from the European Member States attended the event.
It is noteworthy to mention and acknowlege the efforts put in by all the
Sector Committee Chairpersons & its members and all their
knowledge partners for the timely publication of the EBG Position
Paper, 2016
The event was sponsored by BMW, G4S, Maersk Group, YES Bank, BAE
Systems, Bio Merieux, Hindustan Unilever Limited, SAAB Group,
Michelin, Nokia, Outokumpu, Alar, Moet Hennessy & Kyndal Group.
EBG Federation – Bengaluru Chapter released the Position paper on key
policy reforms for business growth on Friday, 8th July, 2016 in Bengaluru.
The paper was released by the Chief Guest, Karnataka Industry Minister
Mr. R V Deshpande; Chairman, EBG Federation India - Mr. Raman Sidhu;
Chairperson, EBG Federation Karnataka - Ms. Anandi Iyer & Senior
Advisor, Position Paper & Sector Committee Chairperson - Mr. Rajeev
Gupta.
While addressing the participants at the release of the EBG Position
paper, Mr. Deshpande said “Karnataka shares very strong alliance with
all the European companies that have established a presence here since
past many years, there are several factors that have attracted the
investors and big companies. However, I would also like to request you
to also look at expanding to places like Mysuru, Belagavi, Kalaburagi,
Yadgir and Hubballi-Dharwad in Karnataka which are equally attractive
in terms of connectivity, weather conditions & infrastructure with an
added advantage for low cost lands. Much importance is also being given
to improve infrastructure in Bengaluru too and we plan to set up
elevated corridors and provide Metro connectivity to the airport”.
The event was attended by luminaries, policy makers, decision makers,
industry pioneers of European Companies including Consulate General
from Britain, Germany and Switzerland.
Manod Jinnuri (SAAB Group)
Chairman, EBG's Defence sector committee
EBG's Defence Sector Committee comprises
of all major European Defence companies
operating in India, with significant
experienced members, having many programs and stakes due
to their long standing relation with India and Armed Forces.
Government of India, through their recent steps and
efforts attracted companies to invest and support the
requirements. EBG's Defence Sector Committee is putting
continuous and best efforts giving constructive views and
recommendations on all issues for the best of the common
interests and goals.
The EBG brand supports the European Defence
Companies in their endeavours and their growth in facilitating
and leveraging the European position. Its unique position
through the European Commission, is giving a new visibility to
European Defence companies.
Julian Michael Bevis (Maersk Group)
Chairman, EBG's Logistics sector committee
Mumbai
The EBG Position Paper was presented to Shri Subhash Desai, the
Minister for Industries & Mining, Government of Maharashtra on
Wednesday, 4th May, 2016 at
an evening event organised at
The Taj Mahal Palace, Mumbai.
It was a well-attended event.
The event was supported by
Fuchs Lubricants, Motul and
Solvay Specialities Pvt. Ltd.
Release of the EBG Position Paper, 2016 – Friday,
8th July, 2016 in Bengaluru
Other event updates:
A panel discussion was organised jointly by
Michelin India-EBG-IRF on “Responsible Road
Behaviour”. Mr. Jean Todt, President FIA and
UN Ambassador on Road Safety was the Chief
Guest. The event was organised on
Wednesday, 20th April, 2016 at the Imperial
Hotel, New Delhi.
The eminent panel included Mr Jean Todt,
President, FIA, Ms. Deepa Menon, Senior
Vice President, Corporate Communications &
CSR, PVR Ltd and senior official from the
Government of India which covered topics
on:
1. Road Safety in India – Priorities and the
Road'
2. Change agents and Brand Ambassadors
3. Media as a tool for promoting Road Safety
Behaviour Change
Mr K.K. Kapila, Chairman, International Road
Federation (IRF) Geneva Programme Center
moderated the session brilliantly.
It was an informative, interactive, interesting
and well attended session.
EBG Mumbai Chapter and Wines of India
invited the members to join Sommelier Nikhil
Agarwal for tasting of 10 wines from India's
favourite wineries on Thursday, 16th June,
2016 at AKA, Worli.
EBG members were invited by AmCham to an
interactive session on “Foreign Direct
Investment – Taking the Agenda Forward”
organised at the Shangri Hotel, New Delhi on
Wednesday, 3rd August, 2016.
6
European logistics organisations operate in
India in every sector of the industry. They
provide integrated services facilitating the
efficient movement of freight by land, by sea, by air and
thereby provide essential support to India's rapidly growing
domestic and international trade.
Without such services India's flagship Policy programmes
such as 'Make in India' will though not deliver to their full
potential. An efficient logistics sector is therefore vital to
India's future prosperity
EBG Federation (an association of EU Corporates in India)
exists to represent the cause of its membership to all
stakeholders in India. It exists to ensure that the partnership
between European and Indian business is continuously
strengthened and that challenges are jointly and
constructively addressed.
Logistics impacts all sectors of commerce and industry
and the representation of the European logistics sector in
India is therefore a key element of EBG's activities in India
Patrik Antoni (IKEA)
Chairman, EBG's Retail Sector Committee
IKEA sees good value in working together with our European
peers through the platform that EBG provides. We share
experiences and challenges and are now together engaging
with stakeholders working on common key issues.
EBG's Retail sector committee is also working with Invest India to present its
concerns with recommendations to the relevant stakeholders.
T V Ramachandran (Advisory@TVR)
Chairman, EBG's Telecom Sector Committee
EBG's Telecom Sector Committee (TSC) comprises of
representatives from all major European telecom companies
operating in India and it is to be noted that these represent the
largest investments in Indian telecom. There is great
appreciation among members that the EBG brand enjoys significant respect and
standing with the Government and that this needs to be leveraged more for
facilitating the improved growth of the companies. The Government and the
Regulator appear to be developing a favourable opinion of the EBG TSC and seem to
realise that the EBG is putting forth mature and sober positions on all critical
subjects. The EBG TSC is steadily enhancing its activity level in several areas with the
rising interest among members in supporting the Committee and a growing
demand pull of support services from the Committee and the Secretariat. In view of
the significant value addition experienced by members, it has been resolved to
have a suitable person hired to provide dedicated support to the TSC. The Telecom
Sector Committee appears to be fully poised to rise to the next higher level of
standing and contributions to the members.
EBG's Retail sector committee members in a meeting with Invest India
Financial Services Sector Committee set to start soon. It will have representation from companies like TMF, Home Credit,
BMW Financial Services, Devere Group etc.
Welcome New Members
Delhi
Mumbai
1. Fast Lane Automotive Pvt. Ltd.
2. French Bakery
3. Interem-International Removals Division of Freight
Systems India Pvt Ltd
4. PwC
5. TechLegis, Advocates & Solicitors
6. TMF Services India Pvt. Ltd.
7. William Grant & Sons India Pvt. Ltd.
1. Industrial Accessories Corporation
2. DZ Bank
Bengaluru
1. Siemens Technology and Services Pvt Ltd
2. MercuriUrval India
3. Ernst & Young Private LLP
4. Hutchinson
3
EU & India
Tax Treaty Update
India and Mauritius have ended a decade long negotiation of
the popular India Mauritius tax treaty by signing a historic
protocol which provides inter alia the right to India to tax
capital gain income arising from sale of shares of Indian
companies. The Protocol is yet to be notified by the Indian
Government, and is expected to come into effect from April
1, 2017. The changed treaty grandfathers existing
investments (made upto March 31, 2017) and provides for a
transition period of two years from April 1, 2017 till March 31,
2019 wherein subject to satisfaction of a Limitation on
Benefits clause, capital gains arising from sale of shares
acquired and sold during this period will be taxed at a
concessional rate of 50 percent of the applicable tax rates.
The state of the India-Singapore tax treaty however
remains in a flux. The Singapore tax treaty links capital gains
tax exemption in India to an exemption available under the
India Mauritius tax treaty, which primarily means that the
capital gains exemption under the Singapore treaty falls away
with the new Protocol coming into force from April 1, 2017. It
is however expected that the Singapore treaty will be
renegotiated and current Indian investments made by
Singapore residents will be grandfathered post April 1, 2017.
With respect to EU jurisdictions, there are news reports
regarding the Indian Government opening negotiations of the
Dutch tax treaty with the Netherlands. India has already
renegotiated its tax treaty with Cyprus -as per a recent Press
Release (dated July 1, 2016) issued by the Central Board of
Direct Taxes (“CBDT”). The new treaty will provide taxation
rights of capital gains from sale of shares of an Indian company
to India. However, investments made prior to April 1, 2017 will
be grandfathered and sale of such investments any time in the
future will not be taxable in India. India had declared Cyprus as
a notified jurisdictional area (“NJA”) in 2013 which resulted in
increased scrutiny of transactions with Cyprus including an
increased withholding tax rate of 30%. The Press Release of
July 2016 states that India will be considering rescinding,
retrospectively from November 1, 2013, the notification
treating Cyprus as a NJA.
EU members investing into any of the above jurisdictions
including Mauritius and Singapore which in turn invest into
India may need to determine global tax impact on account of
such treaty changes. The described changes also show that
given the global clampdown on use of tax avoidance
structures, including the G20 and OECD's Base Erosion and
Profit Shifting (BEPS) project, India is also taking steps to
prevent its tax base erosion. At the same time, the manner of
renegotiating tax treaties including grandfathering of prior
investments, coinciding effective date of tax treaties with
advent of General Anti Avoidance Rule from April 1, 2017 is
positive and reinforces the Modi Government's moto of
providing tax certainty without introducing retroactive
changes in the Indian tax law.
Courtesy: Parul Jain, Partner, BMR & Associates LLP
EA Link Project meeting and EBO meeting
The EU Asia Link project - Coordination Platform for the Internationalisation
of the EU BusinessCommunity in the Asia Region.
EBG Federation, India was represented by Ms Rekha Khanna, Chairperson, EBG Delhi Chapter at the 2nd meeting of the Asian
Stakeholders of the EALink project that took place from 13th to 15thJune,2016 in Vientiane - Laos. The objective of the meeting was
to fully exploit the potential of EALink to increase visibility among potential EU customers; facilitate exchange of best practices
among Asia stakeholders, on keychallenges: sustainability & outreach.
Annual EBO meeting in Brussels (20th- 22ndJune,2016)
The EBO Worldwide Network ASBL is the sole organisation
representing EU-wide business interests in third countries (non EU
countries) and today has 29 registered members across the globe.
EBO provides a common platform for European Business in nonEU markets (third markets). EBO shares information and best
practices between the network and its stakeholders in order to
provide first-rate services to European businesses outside of the
European Union. The EBO as a network and its individual
members is the “Voice of European Business Abroad”.
EBG Federation India is part of this global network.
This year's 15th Annual EBO meeting was held in Brussels.
EBG Federation was represented by Mr Raman Sidhu, Chairman, EBG Federation,
India at the meeting that took place from 20th to 22ndJune,2016. Mr Sidhu presented
the 2016 edition of the EBG Position Paper at the EBO meeting. The Paper was well
received.
Apart from the attending the EBO meeting, Mr Sidhu also had important external
meetings with Ms Jolana MUNGENGOVÁ, Cabinet of Cecilia Malmström,
Commissioner for Trade and Ms Helena König, Director for Trade Relations with Asia
and Latin America & the Chief FTA Negotiator for India and their respective teams.
EBG acknowledges the support from Mr Maurizio Cellini, First Counsellor, Head of Trade and Economic
affairs, Delegation of the European Union to India. Mr Cellini has completed his tenure in India.
EBG wishes him and his family the very best for his future.
EBOWWN Board
Mr Raman Sidhu, Chairman, EBG India with
Mr Renato Pacheco-Neto, EBOWWN Chairman
Annual EBG-BBG Dateline Delhi event in Delhi
th
Farewell to Mr Maurizio Cellini, First Counsellor, Head of Trade and Economic affairs, Delegation of the European Union to India
EBG also bids farewell to all the Ambassadors & Economic & Commercial Counselors of EU Member States who have
completed their term in India and acknowledges their support to EBG.
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Wednesday, 10 August, 2016 – Annual EBG-BBG Dateline Delhi event where a panel of eminent speakers will answer questions
on important matters of current affairs.
This year the eminent panel includes Dr Shashi Tharoor, Member of Parliament for Thiruvananthapuram, Chairman of the
Parliamentary Standing Committee on External Affairs; Mr Swapan Dasgupta, Senior Indian Journalist and M P (RajyaSabha); Mr
Anil Padmanabhan, Executive Editor at the Mint, Mr Douglas Busvine, New Delhi Bureau Chief at Thomson Reuters and Mr.Pranjal
Sharma - Commentator, analyst and advisor on economy, globalisation and media. Mr Andrew Soper, Minister Counsellor
(Political and Press), British High Commission will be moderating the session. The Rt. Hon Greg Clark, British Secretary of State for
Business, Energy and Industrial Strategy and the British High Commissioner, Sir Dominic Asquith KCMG will be joining us at the
reception (around 7.30 pm) of Dateline Delhi.
The event is being organised at the British Council, New Delhi. (5:30pm onwards concluding with cocktail reception).
7
Issue 23 August 2016
l
What’s Inside
Release of the 2016 edition of the EBG
Position Paper - 19th April,2016 at the Taj
Mahal Hotel, New Delhi
Raman Sidhu, FCA
Chairman
EBG Federation, India
2
EU & India
3
EBG Sector Committees
4
Release of EBG Position
Paper (PP), 2016 in New Delhi
5
Release of EBG PP, 2016
in Mumbai & Bengaluru
6
Chapter updates
7
EA Link Project meeting
and EBO meeting
8
Newsletter Sponsor
Dear EBG Members,
I am pleased to bring to you the third edition of this year’s EBG Newsletter and at the
outset thank our sponsor Bird Group & Mrs Radha Bhatia in particular in helping bring out
the Newsletters for this year.
Michelin-EBG-IRF joint event: Panel
discussion on 'Responsible Road Behaviour'
– 20th April,2016 at the imperial, New Delhi.
Release of the 2016 edition of the EBG
Position Paper – 4th May,2016 at the Taj
Mahal Palace, Mumbai
Release of the 2016 edition of the EBG
Position Paper – 8th July,2016 at the RitzCarlton, Bengaluru
We pray for world peace and for so many
innocent human beings including little children
killed and injured due to the most mindless,
barbaric & callous killings.
Our focus like every year is to further strengthen the membership across all four
chapters and to build the SME Forum to start with, in Delhi. Members who are interested to
contribute to the building of EBG’s SME Forum can write to Neema S Kumar at
gm@ebgindia.com
In the run up to the publication of this year’s Position Paper, EBG has enabled the
European companies to come together, sector by sector, and present their concerns and
solutions to the relevant Government agencies. The Position Paper has thus set an agenda
for advocacy by EBG and the basis of a continuing dialogue with policy makers and
concerned Government agencies. The Sector Committee members, on behalf of EBG
Membership, will continue to meet and interact with relevant Ministers and senior
Bureaucrats in Government of India and State Governments. This year successful Position
Paper launch events were held in Delhi, Mumbai and Bengaluru on 10th April, 4th May and 8th
July respectively to release the 2016 edition of the EBG Position Paper. We present to you,
in this Newsletter, a peep into the Release events.
EBG Federation is a member of the European Business Organisation Worldwide
Network (EBOWWN)and I attended their Annual meeting in Brussels in June. There are a
lot of positive signals from the European Commission and the EU Delegation in India to
support EBG in India as they see in EBG a very strong body to represent the voice of
European businesses in India. The EBG Position Paper has over the years been very well
received and appreciated by the European Commission, EU Delegation in India and the
EBOWWN members.
Further, we have had important meetings & events over the last few months, a glimpse
of which are presented in this Newsletter’s Chapter updates. I would like to put in a word of
acknowledgment to EBG’s Council members in all its chapters for being the source of
encouragement for EBG’s growth and for holding high the EBG flag.
You can look forward to more interactive sessions and some high profile events in the
coming months with key EBG Stakeholders.
Best wishes to our members who will be on holiday during this traditional European
holiday period & a happy monsoon season to the members who are still holding fort in
India.
May God Almighty rest their souls in peace and
give their near & dear the strength to face this
irreparable loss in Nice, France.
Best wishes,
Raman
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